got quickbooks. now she sends invoices, sees when they've been viewed and ta-da, paid twice as fast! see how at quickbooks-dot-com. ambassador john bolton is officially back in the running for secretary of state as jockeying for the prized cabinet post entered apprentice-like intrigue. this as the president-elect gets ready to hit the road and is getting things done. this is "special report." good evening. welcome to washington. i'm bret baier. the man known for the art of the deal is preparing to announce a big deal when it comes to his company. another deal that fulfills a promise. president-elect trump says he will separate himself in total from his vast business interests in order to concentrate on running the country. the specifics of of the

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separation though likely won't come for about two weeks. the president-elect is touting other deal making with the u.s. company that he has focused on before. peter doocy is live tonight with our top story. >> reporter: good evening. the president-elect promised to pressure american companies that tried to ship american jobs overseas. he delivered on that in indiana. a political victory for him and a personal relief for carrier employees that were about to be out of work. >> i would like to tell him thank you for going out of your way and taking your holiday away from your family and working on the carrier and employees deal and sticking to your word. >> reporter: carrier's parent company does 10% of its business with the federal government and now gets to maintain a good relationship with the next administration. keeping 1,000 jobs that were mexico bound in indiana in exchange for tax breaks, according to a report from "the

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wall street journal." >> exactly what he said was going to happen is happening. he said he was going to fight to keep those jobs here. he picked up the phone. they worked a deal. they got it done. >> reporter: now that he is the president-elect, mr. trump said he is stepping aside as president and chairman of the trump organization. his kids are expected to take over. saying in part -- the watchdog crew warns -- the vice-president-elect spent the day in d.c. huddling with powerful republicans, including paul ryan. mitch mcconnell a. the wednesday guest list included dan coats and john

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kerr kelly and linda mcmann. >> we talked about business and entrepreneurs and creating jobs. that remains to be seen. stay tuned. >> reporter: we have been told not to expect any more cabinet announcements for the rest of this week. the secretary of state search has officially narrowed to four names, tennessee senator bob corker, former new york city mayor rudy giuliani, retired general david petraeus and mitt romney. who joined the president-elect and his soon to be white house chief of staff reince priebus for dinner. after a chocolate cake dessert romney who said this just eight months ago -- >> his foreign policies would make america and the world less safe. >> reporter: expressed a friendlier opinion. >> we have another discussion about affairs throughout the world. these discussions i have had with him have been enlightening and interesting and engaging.

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i have enjoyed them very much. >> reporter: minutes ago word came down that mr. trump is set to meet with another secretary of state contender here in new york on friday, it's former u.n. ambassor john bolton. also a fox news contributor. who sat down with the vp-elect mike pence in washington, d.c. today. bolton is a longtime critic of the obama administration's foreign policy who flirted with a presidential run of his own this cycle. >> peter doocy, thank you. treasury secretary nominee is laying out a potential trump economic plan, major tax reform, corporate and private, infrastructure plans and big ones. economic growth and bringing trillions of dollars back to the u.s. tonight carl cameron takes a look at the trump financial team so far. >> reporter: president-elect trump's choice for treasury secretary has never worked in washington, d.c.

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he was the campaign's finance chairman, a former goldman sachs executive, he created his own hedge fund and financed hollywood movies. he hit the ground running promising to cut the corporate tax rate to 15%. >> we think by lowering the corporate tax rate, we will make u.s. corporations incredibly competitive and create an enormous amount of money that comes back on shore and creates jobs. >> reporter: he predicts the biggest tax cut since the reagan era with an emphasis on the middle class. >> we will simplify the personal income tax, lower from seven brackets down to three, simplify it, deliver a very significant middle income tax cut that's going to be combined with the childcare program. >> reporter: ivanka called for tax credits for childcare at the republican convention. creating 20 million jobs in ten years is the goal. infrastructure improvement is a big part. public private partnerships will be explored. wilbur ross, a major steel

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industry man. a top priority will be turning around the trade deficit with trump's america first approach. >> we're not anti-trade agreement. just we're anti ones that don't make sense. there's need to fix the old ones. there's a need to enter into new ones. >> reporter: trump threatened to put tariffs on u.s. jobs that ship jobs overseas. >> the objective is to build our exports, not so much to kill the imports. that's a total mischaracterization of what's being done. if need be, there will be tariffs and there will be especially tariffs for punitive purposes for people who dump. >> reporter: deputy commerce secretary is the co-owner of the chicago cubs. team trump wants changes to the 2010 dodd-frank law passed to prevent another financial crisis arguing compliance stunting lending and growth.

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affecting the economic changes trump seeks will not be easy or fast. democrats are howling their opposition to the picks and arguing it leaves out the little guy. voters chose a billionaire businessman to lead the country who said during the campaign his administration would include some of the nation's most successful business leaders. it shouldn't surprise anybody that he is doing exactly that right now. >> carl, thank you. a judge in wisconsin is refusing to order a complete recount of presidential votes in the state by hand. the judge says there's nothing to suggest wisconsin's electronic tabulating machines had been hacked. jill stein and the hillary clinton team called for that recount. stein is pursuing recounts in pennsylvania and michigan. a hearing is scheduled for next week in pennsylvania. stein officially filed for a recount in michigan today. the detroit news reports stein tells a michigan radio station that 75,000 ballots with no presidential vote is a red flag. meantime, independent candidate

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rocky de la fuenta is asking for recounts in florida and nevada. he pointed to the margin for clinton's win in nevada being similar to trump's wisconsin margin and said the requests are about election integrity, not who won. ron widen and seven other members of the senate intelligence committee are asking president obama to declassify information regarding russia's alleged interference in the u.s. elections. he is joined in the letter by five fellow democrats and angus king. the white house so far is declid declining to comment. house democrats decided to stay the course, despite a failure to win back the majority. nancy pill ow pelosi holds on. mike emanuel has story from

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capitol hill. >> reporter: a third of the caucus voted for tim ryan of ohio over nancy pelosi. it's clear she has a difficult task of trying to reunite her party. >> i'm worried we sign eed the death certificate. >> reporter: there's a sense of relief for pelosi and her allies. >> i have a special spring in my step today because this opportunity is a special one to lead the house democrats, bring everyone together as we go forward. >> reporter: she's been the top democrat in the house for more than a dozen years. in rank and file members have argued it's time for change. her challenger represents a working class area near cleveland, ohio, where many favored donald trump's message. >> the emphasis needs to be on the issue that unites everybody. that issue is economics. it's jobs. it's wages.

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it's pension, benefits. it's not just talking about the minimum wage. it's about talking about middle class incomes that haven't gone up in 30 years. >> reporter: he earned 20 more votes than pelosi's previous challenger in 2010. to hold on to power, pelosi created more opportunities for younger members and added new titles to the leadership team. some who supported her rival said that alone was a victory. >> we have now a leadership that wants to be more inclusive and include more people from the caucus. we have now a leadership that wants to hear what we have to say, what we think went wrong, how we fix it. >> reporter: the reality is the most prominent democrats on capitol hill are from the country's coasts, pelosi from san francisco and senator chuck schumer from new york. which critics have argued won't help with the disconnect and won't help the party win back the majority. >> it's hard to make change. again, we will see. we don't have an answer right now.

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they think nancy pielosi is the right one. >> reporter: there may be a new message if 63 votes against her got her attention. republicans say democrats have not learned any lessons from the election by staying the course. >> mike emanuel, thank you. leaders of sanctuary cities are preparing to defy a president trump over his insistence that they respect and enforce federal immigration laws. it's shaping up as a high-stakes game of chicken with tens of millions of taxpayer dollars at stake. >> reporter: since donald trump's victory, the size of a brewing fight over sanctuary cities are everywhere. from an airplane last week to the home page of the american civil liberties union with the caption, see new court. to message after message from big city mayors to illegal immigrants. >> administrations may change, but our values and principals as

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it related to inclusion does not. >> reporter: in recent years, hundreds of counties and cities have declared themselves sanctuaries against deportation. while the definition is loose, the common thread for law enforcement seems to be don't ask, don't tell about status. what republicans consider to be eight years of lax enforcement of federal i be coming to an end under a trump administration. what's happening in texas portends what may happen soon nationwide. >> the thing i have already done is i have used my powers as governor of texas to withhold funds to cities or counties that are declaring themselves to be sanctuary cities. >> reporter: it's sure to meet with resistance. >> we have said what we were going to do is not cooperate with what would have to be deportation proceedings. there's no way you could

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actually deport 10 million people in one or two administrations. >> reporter: wesleyan receives $20 million in grant money, which could be withheld unless the college complies with federal immigration law. for cities it would be higher. >> top ten received $350 million in grants. those are the grants that could be denied. this is funding for police enforcement, these are funds that the city would not want to lose. >> reporter: trump moderated his stance on immigration since winning vowing to deport two to three million law breakers. >> they are terrific people. we will make a determination. >> reporter: however, the sanctuary policy evolves, it may face a deluge of court challenges. it highlights the supreme court vacancy that must be filled. at least five people are dead following storms with possible tornadoes in the south.

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three people were killed and one injured in a mobile home no northern alabama. a husband and wife were killed in southern tennessee. federal prosecutors say a north carolina man has been arrested and charged with setting two of the wildfires roaring through parts of the southeast. the rain from the storms we told you about is helping battle against those fires. but it comes too late for many. who have lost their homes, businesses andleast seven people who lost their lives. >> reporter: heavy rains across eastern tennessee cooled hot spots still smoulderring. but the large quantity of rain came as a mixed blessing. >> a new challenge that the weather is creating for us after the fire is we are experiencing some small mudslides and rock slides.

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because there's no longer that foliage that's holding everything together. >> reporter: the storms produced winds that toppled trees and power lines. survivors are sharing stories of narrow escapes. this man posted a video after he and his brother fled a fire engulfing their neighborhood. their exit blocked. they had to turn around and head back toward the flames before reaching safety. two days after fires race across this hillside community just outside gatlinburg, some are still smolring. the home next door was left untouched. >> we had animals. that's the reason i came back to get them. i have a parrot and a cat. i wasn't about to let them get burned up. >> reporter: he got out safely with his pets. but heat from the flames was so

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intense it actually melted the plastic on the side of his suv. >> i honestly thought we were not going to make it back out. >> reporter: others were less fortunate. they have recovered three more bodies bringing the death toll to seven. that's that could rise as recovery crews move into new areas where the fires are receding. the pilot of the plane that crashed into n colombia told air traffic controllers he had run out of fuel before hittin a mountain. that's according to leaked recordings of the final minutes of the flight. the pilot cited electrical failure. it was carrying members of a soccer team and the fox sports brazil team. six people survived. the head of house homeland security committee, a possible homeland security nominee, talks trump transition, immigration reform and the ohio state attack

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investigation. first, here is what some of our afi affiliates are covering. no charges against the police officer who shot a motorist in september. the officer acted lawfully in using deadly force against keith la lamont scott. video and other evidence disputed the fact by his family that he was not armed. the wife of a marine is told she must remove an american flag from outside their home. the homeowner's association says the flag must go. it is located in a common landscaping area. she says other residents display flags and signs without consequences. a live look at new york. one of the stories there tonight, the hunt for a man who took off with a pot of gold. the nypd releases video of the man wobbling off with more than a million and a half of gold

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flakes. the company transporting is offering a $100,000 reward for information leading to an arrest. that's tonight's live look outside the beltway from "special report." we'll be right back.

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investigators say the is somali-born student may have been inspired by isis. he was killed by a police officer. officials say it's too soon to call the incident terrorism. they say they are not aware of any direct contact between the attackers and isis.

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michael mccall joins us tonight to discuss the donald trump national security setup. first, to get reaction to the ohio state situation and investigation. thanks for being here. >> thanks for having me. >> what do we know about this guy and his potential ties? >> we know he was born in somali, then pakistan. came into the united states. we know there's secondary screening by customs and border patrol coming out of pakistan into the united states. i requested aid c eed a copy to we may have known about this individual before he came into the united states. here again, we have another case of an individual coming from a high threat hot terror spot area into the united states, radicalizing and then attempting to kill people. >> the fbi is saying, likely self-radicalized. officials can't get to calling it terrorism. we have seen this before.

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why? >> we have seen this time and time again. they are very reluctant to call what it is. it's radical islamist terror. we know he was inspired by the same cleric that inspired the ft. hood bomber, the new york bomber, san bernardino. in addition, we know that the isis spokesman who was killed by a drone strike set forth in 2014 what the new terror agenda is going to be. that is to attack the non-believer in their backyard. this is a new terror threat that's evolving. that is to activate individuals in the united states by means of the internet to kill americans. he talks about using vehicles and knives, the same method that this terrorist used in ohio. >> there's a frustration here. clearly the election -- donald

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trump tapped into that about the concern about radical islam in the election. he did tweet today that this person should not have been allowed into the country, should not have been here as a refugee. how would you prevent this guy from being here? >> i think one thing is very clear. i met with the president-elect. we talked about ramping up our vetting procedures in terror hot spot areas like pakistan to raise the threshold. i have a bill many congress to provide that an ice investigation take place over there before they come into the country. that we also use social media. we saw the san bernardino plot unfold with the black widow who had things on social media. we didn't know about that. no employer would hire somebody without looking at their facebook and social media. the federal government is just now doing this and not doing it very well. >> you agree there's an

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evolution here, a self-radicalization, if the guy comes in as a kid, you are not going to be able to process that or stop that before it happens, right? >> i think that is the core of the problem and the issue. if somebody comes in and they pass the screening test, which i think needs to be ramped up, once they are here, can he they self-radicalize or do they have more of a propensity to do so? we saw that in case after case. the syrian population -- i introduced a bill to stop the flow of syrian refugees into the united states, because of what i saw to be a high risk factor of not only terrorists coming in, which is what the secretary of homeland warned about and fbi, but the idea that once they are here, they have the potential to self-radicalize and kill americans. >> i want to turn and ask you about your meeting with the president-elect. you were said to be considered for homeland security secretary, a job i assume you want. how did that meeting go by your

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thoughts? >> i thought it went very well. we had a very productive and substantive conversation on his priorities. many of them related to homeland security. we talked about this case specific, the ohio state case. we talked about in terms of immigration how can we ramp up the vetting procedures overseas so we don't have this happen in the united states, we don't have the orlandos and new york and san bernardino cases. we need to look at immigration differently. coming from the high threat areas, we need a higher threshold of investigation and review and vetting before we let these individuals into the united states. >> you know as names are being tossed around, there's a lot of people that put stuff out, either for or against someone. today in the washington times, the president of the americans for legal immigration pac wrote --

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your response to that? >> you know, unfortunately, when you have people jockeying for position, they will go to the press and say negative and false things. this is absolutely false. i have never supported that idea. in fact, i've been consistently the biggest advocate on the hill to secure the border. i talked to mr. trump about how we can secure the border once and for all and building the wall. couns countless times i stood up to defend the united states against terror coming in and terrorist pathways. so i find it incredulous and inflammatory and quite frankly, it's slanderous. >> paul ryan in that very chair a few weeks ago asking him about immigration. he did sound a little bit different, obviously, than donald trump on the trail.

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do you think that there will be synergy in how to deal with immigration with the house and senate republicans and the trump administration? >> i think there's going to be great synergy. in the meeting i had with the president-elect was very positive in terms of advancing his agenda. what we will look at is how do we build a wall, secure the border? how do we deport criminal aliens out of the united states? how do we close off terror pa pathways in the united states to stop like the ohio state terrorist from coming in? how do we stop the bombing plot s plots? how do we ramp up vetting? rudy giuliani and the attorney general of the united states and i worked together on a memo that we provided to the president-elect six months ago talking about how we can ramp up this vetting process overseas in

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terror hot spots to keep bad guys and terrorists from coming into the united states. >> mr. chairman, we appreciate your time. we will follow the transition. >> thank you so much. the fbi will be able to search multiple computers across the nation with just a single search warrant. multiple media reports are saying the new rule goes into affect tomorrow. british lawmakers have approved a controversial internet surveillance bill. it creates databases of online activity by requiring telecom companies to keep customer browsing histories for one year. supporters say it provides the government the tools necessary to combat terrorism. civil liberty groups say the measure goes far too far. president obama is in part blaming fox news for the massive losses suffered by democrats in recent elections. our channel has been talked about a lot by president obama over the last seven and a half years.

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howard kurtz has a look at what the president said and what it may tell us. >> reporter: president obama took a parting swipe at fox news lamenting why white working class voters turned out for donald trump. he told "rolling stone" part of it is fox news in every bar and restaurant in big chunks of the country. part of it is democrats not working at a grassroots level. the president has the words biggest bully pulpit. >> first of all, i have one television station entirely devoted to attacking my administration. that's a pretty -- >> i assume you are talking about fox? >> that's a pretty big megaphone. >> reporter: that view made no distinction between the news and opinion programming. >> if you talk to somebody who

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said, i don't know, i was watching fox news and they said -- good affordable health care might seem like a threat to the freedom of the american people on fox news, it turns out it's working pretty well in the real world. >> reporter: fox journalists would push back. >> these guys, everything is personal. they are the biggest bunch of cry babies i have dealt with in my 30 years in washington. >> reporter: the justice department battled the president seizing phone records and fox's correspondent james rosen. sometimes obama uses the channel to argue that right and left prefer sympathetic outlets. lately, his fox fixation had faded. >> mr. president, welcome back to fox news sunday. >> it's great to be with you. >> been a while. >> better late than never. >> reporter: he is entitled to challenge this. he uses foxes a scapegoat. he is handing the reigns to trump who denounced cnn and the

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new york ty"new york times." the oil cartel opec has agreed to put its oil production for the first time in eight years. in an effort they say to trim the glut that has led to decade low prizes. it will cut 1.2 million barrels a day. russia, which is not a part of the cartel,is prepared to slash 300,000 barrels a day. look at stocks. they were mixed today. the dow gained two. the s&p 500 was off six. the nasdaq dropped 56. log on to foxnews.com. read my piece about what's happening in cuba and what lesson might provide for a president donald trump dealing with the challenges in the post fidel castro era. it's based on my book, "three days in january." it's out january 10th. stay with fox news and f foxnews.com for the latest

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developments. nancy pelosi hangs on to her leadership role in the house. what's does that say about the state of the democratic party now? we will ask the panel when we come back. the real gift isn't what's inside the box... it's what's inside the person who opens it. give ancestrydna, the simple dna test that can reveal their ethnic origins. order now at ancestrydna.com and save 10%.

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i have a special spring in my step today because this opportunity is a special one to lead the house democrats, bring everyone together as we go forward. >> leader pelosi has been here a long time. she has a lot of friends. this is her caucus, clearly. i'm proud of having 63 votes. >> he didn't lose today. today, we made a caucus more responsible to its members. >> despite all the best efforts of this particular leadership, they don't understand what it's like to run in working america. >> we are in for the battle our lifetime these next two years. we need somebody who has heard the discontent but knows how to

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bring us all together. >> some democrats responding to the vote today in the house. it came down like this. nancy pelosi, 134 votes, to continue being house minority leader. tim ryan, 63 votes. that's the most votes an opposition figure has had to pelosi ever. he beats schueller by 20 in 2010. you heard a sense of how old, perhaps, the leadership of the democratic party is. as you take a look at some of the leaders in the house. nancy pelosi, 76. they did elect some newer members today. leadership positions for representative sanchez and representative crowley from new york. the real leaders of the democratic party, according to many, are two senators, bernie sanders, 75 and senator elizabeth warren, 67. what is the state of the democratic party right now?

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let's bring in our panel. john goldburg, laura ingram, maura liason and jason riley. >> i was told there's no math. >> six, seven, carry the nine. >> i added up the ages of those three and nancy pelosi. it's as old as the united states of america. it goes back to the -- more or less to the signing of the declaration of independence. that is the kind of fresh, new blood, clear, crisp, 21st century thinking the democratic party needs at this time. that's a full third of the caucus. they have a real problem in the sense -- particularly nancy pelosi who literally represents the san francisco democrats. she's a cultural, coastal, elite figure who plays well with the donor class of democratic party and the idea the democratic

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party will get new messaging through those three sounds unlikely. >> jason, you have the head of the house democrats, a san francisco liberal. the head of the senate democrats, a new york liberal. and you have a guy from youngstown, ohio, who won the district that voted for donald trump who essentially was setting up -- sending up the red flare. >> not just any district in ohio. this was a deep blue district that obama won twice by double digits. trump flipped it. this guy knows what he is talking about. even with the popular vote, hillary clinton is still only going to win about 48% of the vote. the democrats are in trouble. the last -- it's been 50 years since a democrat won more than 51% of the popular vote. obama has done it twice. he is the only one. either they need to find another obama or start reaching out to these working class white voters that tim ryan says they need. >> laura, you said it time and again that republicans didn't

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get it for a long time. the trump revolution, if you will. democrats clearly are not getting it if that's the leadership structure. >> i think you are absolutely right. when you think of the two figures that -- i think that drove working class people to the polls for trump, one was nancy pelosi, one was hillary clinton. they represent the same world view, very elite as you said. they can raise a lot of money. i think we have to all remember that. nancy pelosi is a fund-raiser. money talks with the democrat party. we had the same issue in 2006. we remember the republicans lost in the mid-terms in 2006. iraq war rwas unpopular. the republicans re-elected john boehner to leadership in the house of representatives. there were a lot of us at the time, said, something is not going right. this is a real problem. there was anxiousness in the base of the republican party for

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change in leadership. i would say that even in this recent vote in the house and senate for the republicans, republicans have done well. but there was still this antsiness among some for change away from ryan, even away from mcconnell. in the end, if you there and you have been wielding power, you have a lot of influence. you can threaten a lot of people. there are few people who want to -- you want to kill the ng, you better kill the king. >> from a democrat perspective, the ones who supported nancy pelosi, they say she can whip votes, she is someone who manages the house very well. however, when it comes to elections -- >> there are two functions. one is to be the leader of your caucus in the houser senate. mitch mcconnell is not the most charismatic person, but he is a good leader. nancy pelosi is considered to be a good leader. the problem for the democrats -- >> let me interrupt. as far as pulling the levers

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that each chamber -- >> to function, get votes, keep your members unified on your side. but then there's the other task. this is the real hard poart for the democrats who relied on the white house is they don't have a pipeline. because they lost so badly in 2010 and 2014 and they now as we know have fewer elected offices nationwide than any time since the 10920s, they don't have a nw generation of leadership. they have to develop that fast. >> is it there? >> not with nancy pelosi. this is a woman who has led democrats to four straight defeats when it comes to elections that control the house. that's why republicans are thrilled with this choice. >> a huge cultural problem. white working class, the guys who put trump over the top in this election, they have been the bedrock of the democratic party's coalition since fdr. republicans have won college educated whites for all time. goldwater won college educated

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whites. the response from the elites in the democratic party and from the john stewart types that these voters are now racists because they didn't vote for democrats. that's not a winning message to win them back. >> that's not actually true. obama didn't win those white working class districts. he just lost them by 43% instead of hillary's 37%. >> he won tim ryan's district. >> yes. but the point is the white working class has been trending republican for a while. obama kept his head above water with them. >> we remember that the democrats have been running this identity politics political correctness game for a long time. you just get the sense that people are getting tired of it. if you are for immigration, you are anti-immigrant. if you think black lives matter goes a little overboard, you are racist. everyone is tired of it. they play that morning, noon and night. we have to growth. we had no great job creation. their policies failed. the regular working people.

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identity politics aside. >> there was a poll in western pennsylvania that said people thought that hillary clinton was about transgender bathrooms. >> cultural issues don't matter. >> you mentioned president obama. "rolling stone's" interview. he says this, -- jason, i mean, we have heard that it's the messaging. you weren't there in wisconsin, hillary clinton. fox news is a common thread for

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this president for seven and a half years. >> exactly. this goes back to anita dunn, to david axelrod. but the second part of that sounds like obama hasn't been president for the past eight years. how can a man go and complain about middle america clinging to their guns and their bibles and then say, but my party hasn't done a good job of reaching out to these rural voters? maybe they have been taking their cues from him. >> we have seen this evolution of him explaining this election. this is the latest. >> everything he said except for fox news is pretty correct. he was critical of his own party. he threw that whiny aside in there. >> he always says it's the messaging not the policy. >> obama won twice and he won in a lot the of these districts as jason said. but we have had three elections in the obama era without obama on the top of the ballot -- on the ballot where they can't turn

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out the numbers. >> two-thirds of the state legislatures are republican. 34 governors are republicans. >> a deep hole. >> almost seven in ten people say the country is going in the wrong direction. wages have been flat since 1999. this president for all of his kind of no drama obama, comes out in a very infan tile manner blames cable news and i'm surprised he didn't mention talk radio, because that's what he usually does, without any sense of personal responsibility. they say trump can be immature at times. what was that? he goes over to europe and says, i'm very popular. look at the polls. my policies are popular. you got shellacked. do what bill clinton said and say, that was a -- we took it. >> we are number one. he thinks we control the universe. >> just as a matter of fact, it's not true that every bar and

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restaurant in the country is running fox news. >> how about every airport? >> speaking of that -- airports, listen up. >> what was the last bar or restaurant that obama went to that had fox news blaring? i want to know. it's classic obama. the only reason i'm not fully succeeding is because there are people being deluded and being fooled. they don't believe their lying eyes. they are being -- this is his shtick for a long time. it's not true -- obamacare has never been popular. >> those two elements today suggest -- that nancy pelosi re-election and obama saying messages is wrong, don't suggest democrats will restructure. >> not any time soon. this will be a long process. they're in the political wilderness. they have to find their way back.

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a real message on the economy about growth and fairness. not just about fairness. they need to do that. they need to replenish their farm team. that's going to take a long time. that's their task. i think many democrats understand that. it's just that right now we can't see the path. >> next up, the latest with the trump transition.

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i know what it takes to make sure that we can make loans. small and mid market companies. that's going to be our big focus. >> if need be, there will be tariffs and especially tariffs for punitive purposes for people who dump. >> this is going to be an assault on the elites of the coast. i think going to do pretty

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well actually in this cabinet. >> there you see steve mnuchin and wilbur picks so far, just to give you a perspective. there you have all the cabinet picks so far and the ones yet to be named. and then the trump administration picks so far and the ones yet to be named. and there you have that. and just to give you a perspective on timing, the ... done. six appointments or nominees so far to this. on the finance side, if you look at the markets, they seem to like what's happening since election day. significantly. and we're back with our panel. let's start with the finance team and what we know about it so far. jason? >> well, i think in terms of treasury, which obviously is a very important cabinet post. some conservatives are hoping for someone like a

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jeb henserling more ideology. munichson capable and able person. a loyalty somebody who supported trump all along. someone who might bring disagreement to theable. he supported more democrats than republicans in the past. he supported hillary clinton back in 2008 and then barack obama. but i think the real question here is going to be whether trump takes advice of these tokes. wilbur, ross, munich be. they know what they are too long. will he take their advice or run things out of the white house. that remains to be seen. >> it sounds like they have got plan. vice president pence was up on the hill talking to mcconnell and ryan. they are trying to fast track this thing. >> they have a plan for tax cuts. steve mnuchin says there is going to be no net tax cut for the wealthy. in other words, somehow by getting rid of their deductions it will come out in the wash. many people have questioned whether there are even enough deducts to get rid of

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to do that. they are also talking about infrastructure which i think is the biggest question mark in the whole thing. that was the biggest populist proposal that trump made that he was going to have in effect a huge jobs program. one thing to cut taxes and boost growth, make the market happy. one thing to actually create jobs for these people who voted for him. >> laura, you could on this reoperatation get this money back in and do a private partnership with congress on the infrastructure projects. >> i think that's what they're planning. both picks mnuchin and roth are going to take this market and it's going to go up like a rocket ship for a bunch of reasons. first of all, all these people said jobs are never coming back to the united states. i good that today. how many people said we are never going to get these jobs back in the united states. well, we saved 1,000 from going to mexico in the carrier deal that we're learning nor about now. >> i do want to see more specifics tomorrow. >> it looks like public private. carrier was worried about

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united technologies not getting government contracts. u.t. loans carrier and prated where my dad worked for 35 years. government contracts. think about wilbur ross today he comes out after writing a lot of the articles on trade. brilliant guys comes out and says transpacific partnership is dead. we are not doing those types of trade deals. doing deals bilateral deals that we can police and change if necessary when they don't -- people cheat or they don't work out well for us. but we are going to do aggressive trade. people are going to like it. he is with trump on these issues and i think mnuchin as well. work really well with trump. proof is going to be in the policies and that's how they are judged. >> joanna, quickly, is he moving along. >> no. he is. you know, as the conservatives very critical and skeptical of trump. can you nitpick about the cabinet appointments so far it seems to be going very, very well. i don't think this carrier thing -- i think it's brilliant politically big win for trump politically. enormous moral hazard

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involved in saying that the white house now can be baited into these kinds of tax give aways and corporate welfare to save 1,000 jobs. but, as a one-off, it's not all that objectionable and great politics. >> 10 seconds no, decision whether i are in or out, laura. >> i want to make sure that i can come here no matter what. not yet. >> that's it for the panel. stay tuned for a company that's doing a little holiday extra.

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finally tonight, domino's pizza in japan is unveiling a new christmas special. the pizza company release adds video of employees in japan training santa's helpers in pizza delivery. this is not a joke. they are really doing it. delivering pizza via reindeer and sled. each sled equipped with g.p.s. where you can track your pizza where it's going to be. the real question is whether l. they still deliver in 30 minutes or less? that may be very questionable according to this video. but we'll see. thanks for inviting us into your home tonight. that's it is it for this "special report," fair, balanced and unafraid. no online show tonight shutting down in 2016. back in the new year >> it is thursday, december 1st. kidnapped, chained, bruised and beaten. for the first time the husband of a mother found on the side of the highway is speaking out. >> she was bound.

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she had a chain around her waist. she had a bag over her head. that is correct. her left hand was in the vehicle chained to something. >> the brand new details of her horrific kidnapping as police release new clues in the hunt for abductors. >> fast on the trail kicking off his thank you tour all while working behind the scenes to fill his cabinet. >> what role is sarah palin in the running for? we are live in washington. >> no packing heat in these pants. telling customers to leave their guns at home. "fox & friends first" starts right now. >> you are watching "fox & friends first" on this thursday morning. >> i am abby huntsman. thank you for starting your thursday with us. we begin with a fox news alert. an oicer killed in the line of

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duty. >> another one his accused killer barricaded in a home in tacoma. the standoff beginning just after the officer was shot responding to a domestic disturbance call that was around 5:30 last night. he was shot multiple times by the suspect who then turned the gun on his partner. >> my partner is down inside the residence. >> copy. inside the residents. >> 4-5 shots in the house. >> i was able to return fire but i don't know if i hit him. >> a woman and two children in the house at the time have been safely evacuated by officers as the gunman remains hold up inside. the officer not yet identified. nearly 100 people came to honor the fallen officer during a procession as his body left the